Transactions through United Payments Interface recorded an 88 percent increase in volume at 19.65 billion and over 71 percent increase in value at Rs 32.5 trillion in Q3 of 2022 as compared to Q3 of 2021.
UPI Person-to-Merchant (P2M) and Person-to-Person (P2P) emerged as the most chosen payment method among consumers, accounting for 42 percent of total transaction volume, said Worldline India’s ‘India Digital Payments Report’ for Q3 2022 on December 5.
Conversely, in regards to value, UPI P2M contributed to 19 percent of digital transactions, whereas UPI P2P counted for 65 percent. This is followed by credit and debit card payments, which accounted for 7 percent of volume and 14 percent of value.
“Digital payments are gradually becoming like a commodity and forming a subtle yet an integral part of our lives. The swift adoption of digital payments can be witnessed with each passing quarter. Popular payment instruments like UPI, cards, PPIs are already clocking over 23 billion transactions in a quarter,” said Ramesh Narasimhan, Chief Executive Officer, India, Worldline.
Overall, in Q3 2022, UPI, Debit and credit cards, and prepaid payment instruments like Mobile Wallets, and prepaid cards executed 23.06 billion transactions amounting to Rs 38.32 trillion.
“As of Q3 2022, the top 3 UPI pps in terms of volume and value were PhonePe, Google Pay, and Paytm Payments Bank App. The top five Remitter Banks were State Bank of India, HDFC Bank, Bank of Baroda, Union Bank, and ICICI Bank.
Q3 data also indicates growth in the average ticket size of transactions using cards and UPI. For credit cards it is Rs 4,833, debit cards it is Rs 2,073, UPI P2M it is Rs 738, UPI P2P it is Rs 2576, prepaid cards it is Rs 473, and M-wallet Rs 382.
The total transaction between credit cards and debit cards comes to around 65 percent and the remaining 35 percent has been shared between UPI P2P, UPI P2M, and prepaid cards.
In Q3 2022, frequently visited physical merchant categories like grocery stores, restaurants, clothing and apparel, pharmacy and medical, hotels, jewellery retail, specialty retail, household appliances, and departmental stores together accounted for over 61 percent in terms of volume and about 58 percent in terms value.
“In the online space, e-commerce (shopping for goods and services), gaming, utility & financial services contributed to over 86% of the transaction in terms of volume and 47% in terms of value,” the report said.
Credit Card transactions clocked at Rs 3.5 trillion whereas debit card transactions were at Rs 1.88 trillion in Q3.
Credit card volume and value were 725 million and Rs 3.5 trillion in Q3 2022, respectively. Credit card transactions at POS accounted for 386.83 million, while e-commerce accounted for 338.80 million.
“In the third quarter of 2022, the volume and value of debit card transactions were 907 million and INR 1.88 trillion, respectively…Debit card clients typically use their cards for small ticket-size transactions at physical touchpoints, but value-added services including EMI and BNPL are suddenly allowing consumers to use their cards for high-value items and services,” the report added.
Checkout Budget Highlights 2023
